The subsidized fuel quota, established under the 2013 state budget, would be increased by 9 percent to almost 49 million kiloliters (kl) in a bid to meet demand, a minister has said
he subsidized fuel quota, established under the 2013 state budget, would be increased by 9 percent to almost 49 million kiloliters (kl) in a bid to meet demand, a minister has said.
The Energy and Mineral Resources Minister Jero Wacik said on Wednesday that the government would suggest the increase to lawmakers at the House of Representatives during discussions to amend the 2013 state budget.
Last year, the government and the House legislators approved the quota for subsidized fuel for 2013 at 46 million kl, a 2 percent increase from last year's quota, while fuel consumption in Indonesia rose 9 percent from 2011 to last year.
'As a result of the estimated steady economic growth of 6.5 percent and strong vehicle sales, the current subsidized fuel allocation is likely to be insufficient and, thus, it is compulsory [for us] to fight for the extra quota,' Jero told reporters in Jakarta.
Deliberations to revise the state budget usually take place between March and April each year, but the sudden replacement of the finance minister recently would likely push the date back to late April or May.
Last year, the total consumption of subsidized fuel hit 45.27 million kl, an increase of almost 9 percent from 2011, which was around 41.7 million kl.
The government initially assigned funds for 40 million kl of subsidized fuel last year, less than the actual consumption in 2011. But the quota was later increased to 44 million kl and then, as a result of soaring consumption, to 45.27 million kl.
In the first quarter of this year, the national consumption of subsidized fuels reached 7.03 million kl for Premium ' the local brand of RON 88 gasoline ' a mere 2 percent less than the quota of 7.16 million kl for the quarter, according to state oil and gas firm Pertamina.
The consumption of subsidized diesel, meanwhile, reached 3.703 million kl, which is 5.2 percent above the quota of 3.52 million kl.
The diesel shortage had caused long queues at gas stations in cities such as Yogyakarta and Semarang in Central Java; and Padang in West Sumatra.
Separately, Pertamina CEO Karen Agustiawan said calculations by her team saw 23 regions in the country had experienced diesel consumption that exceeded quota by up to 10 percent.
'We urge respective governors and officials to conduct sidak [sudden inspections] to those gas stations in the field because we [Pertamina] do not know how many vehicles make multiple daily visits,' she said.
Indonesia set the price of subsidized fuel at Rp 4.500 (49 US cents) per liter, making the country's fuel price the cheapest of the Southeast Asia countries.
Most motorists preferred to purchase subsidized fuels rather than non-subsidized fuels, such as Pertamax, which can be sold for up to Rp 10,000 per liter.
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